Accounting News and Notes

Duluth/Atlanta CPA Saves. Taxpayer $26,000 plus in Previously Assessed IRS Tax Penalties 

Tax Representation is not for those who choose to represent themselves as just as Believers have Jesus Christ to be an Advocate with us with our Heavenly Father (Job 16:19), so should all taxpayers seek to work with a CPA who is well versed with tax representation issues. Recently we had the opportunity to retain a new client who had utilized the services of someone who was not a CPA nor familiar with IRS tax representation issues. Though it took some number of months to address adjudicate the issue, we recently received notification that the IRS abated over $26, 000 in Tax Penalties that had previously been assessed a taxpayer. 

Don’t be misled by services telling you can settle by services telling you can settle for pennies on the dollar, as this is partly but mostly not based in absolute truth as often tax penalties such as the above can were abated 100%. However the IRS will not abate any monies during an Offer in Compromise process unless a taxpayer qualifies, which in itself is a facts, strategy and procedural process. No CPA can guarantee what anyone will do much less the IRS, care should be taken to ensure that the client is well apprised on the reasonable scenarios that may occur and frequently well able to advise that tax payment rather than representation is the best process. 

Below are articles that you will want to refer to often to help guide you in addressing IRS Representation issues as you address Installment Plans, Back Taxes or an Offer in Compromise. 

Solving Atlanta IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest. To learn more http://www.hiscpa.com/working-with-the-irs.html

Paying Your Taxes – Withholding & Extensions for Metro Atlanta Taxpayers
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered. Visit http://www.hiscpa.com/paying-taxes.html

How to Avoid an IRS Audit for Atlanta Taxpayers
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit. See http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an Georgia Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems. Visit http://www.hiscpa.com/offer-in-compromise.html

Utilizing IRS Installment Plans for Metro Atlanta Taxpayers to Pay Your Past Due Taxes
The IRS has long been in the business of helping taxpayers get back into the system to ensure that taxpayers are able to pay their taxes over time. For those who do not qualify for an Offer in Compromise or to pay the taxes and interest in full, while seeking penalty abatement, an Installment Plan is a prudent and wise choice and alternative to get your past taxes due paid and current. See http://www.hiscpa.com/installment-plans.html

 John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Duluth CPA Helps Gwinnett Taxpayers with Sales Tax Reports and How to Avoid The Top 10 Mistakes Taxpayers Make

The below is a sample inquiry we might receive off of www.HisCPA.com, which is our web site where Atlanta Business Owners/Taxpayers Seek Advice to Keep Their Tax Bill as Low as Legally Possible 

John– I’ve dropped the ball on keeping my GA Sales Tax paid.  Can you provide the ST-3 pre-filled and ready to submit with payment?  My software (QuickBooks) will show me what to pay, but doesn’t provide the ST-2 filled out appropriately. 

Is this something you’d normally handle, or something we should talk to a bookkeeper about?  We’re planning to bring someone in to help with the books a few hours a month (whatever it takes) so we can keep things fully updated and accurate.  That’s not my strong suit. Last question– to catch this up, from March till now, should we submit one payment and ST3, or 5 separate payments and ST-3’s? Thanks,

Below is my response: 

I would be happy to assist/prepare the sales tax reports. If you would like for me to do them I will need the info. as detailed on the form by month and the original forms. 

We will want to do the forms monthly and not a recap. I also would suggest you make individual payments for each month.

How to Avoid The Top 10 Mistakes Taxpayers Make

Being able to avoid the most common pitfalls taxpayers make is critical to your personal financial success.  Careful discernment and wise application of tax law is an essential and critical part of avoiding otherwise avoidable IRS notices, penalties, responsibilities, IRS audits and amendment of prepared returns.  As a Body of Believers, we are commanded to give unto Caesar what is Caesar’s.  As such and based on the premise of the U.S. tax system, we as taxpayers are solely responsible for the initial filing of our returns and the fair and just filing of our lowest legal possible tax.  Avoiding these top pitfalls that many fall prey to will be an integral step in the proper preparation of your return.

Phase-outs of Itemized Expenses

Many taxpayers fail to consider in both tax planning and preparation of their returns, that itemized expenses/Schedule A can be phased out/limited based upon a taxpayers Adjusted Gross Income (AGI) and their tax filing status.

Phase-out/Limitations of Total Exemptions

Tax law allows taxpayers to take exemptions for themselves, their dependents, their spouse if filing jointly and additional exemptions if disabled or over a certain age.  There total exemptions are then multiplied by the indexes for inflation annually and then this total is deducted in determining taxpayer’s AGI.  Like a taxpayer’s itemized expenses, these too are limited based upon a taxpayer’s AGI and filing status.

Alternative Minimum Tax

Certain items on a taxpayer’s individual return can trigger an additional tax assessment.  This amount is over and above what otherwise would have been assessed if a taxpayer solely referenced their taxable income to the appropriate tax table.  Tax law mandates that taxpayers then pay the higher of the two amounts generated either from regular tax tables or the Alternative Minimum Tax, which is calculated on Form 6251.

Misunderstanding Extensions

Taxpayers frequently fail to understand that an extension to file a return is not an extension of time to also pay the taxes due.  The IRS has a rigid schedule for payment of all taxes and in some cases, there is no room for flexibility whatsoever.  Taxpayers should accordingly take care to pay all of their taxes as they become due without regard to whether an extension to file has been filed/granted.  Always keep in mind an extension to file is not an extension to pay.

Determining Deductible Expenses

Taxpayers frequently fail to understand what they may and may not take as itemized expenses on their Schedule A.  Similarly, individuals often fail to stay abreast of tax law changes and the limitations, documentation and phase-outs thereof in determining their just expense.  Also, many taxpayers who have an unincorporated business/a proprietorship fail to have a good understanding of what qualifies as a business expense, the assessment of self-employment taxes and the attendant responsibility of making estimated payments.

Un-reimbursed Employee Expenses

Tax law allows those who are employees to deduct un-reimbursed business expenses, which are reported on Form 2106.  The total of these are then rolled forward to a taxpayer’s schedule of itemized expenses where they are also subject to additional phase-outs.  Often taxpayers fail to have a good understanding of what qualifies as an un-reimbursed employee expense and fail to correctly document and calculate business mileage.  They frequently fail to consider reimbursements received from their employer and inadvertently include in their mileage/travel expense amounts, their daily commute to and from the office, and these are not deductible.

Retirement Plans

This error is most frequently an error of omission as taxpayers fail to avail themselves of the many and varied options open to reduce their personal taxes and to plan for retirement.  If a taxpayer also has an incorporated or unincorporated business whether a C or S Corporation, LLC, LLP, or partnership, there are even more options for a taxpayer to implement that will allow for a dramatic reduction in both their federal and state tax liabilities.

Going It Alone

Most taxpayers would never consider performing their own surgery and so it should be for the preparation of one’s personal taxes.  At a minimum, I suggest that you have a CPA prepare your taxes at least every three years but I would limit this exception to only very simple returns with no itemizations.  For all taxpayers who would be classified/considered as part of America’s middle class or any taxpayer who owns a business, should have their return prepared by a CPA each and every year.  Tax law changes, nuances, limitations, tax and retirement planning, investing and strategic financial issues are too critical to be satisfactorily addressed alone.

Premature IRA/Pension Distributions

All too often taxpayers will make or receive a premature distribution from their IRA/401K/Pension Plan.  This is perhaps the largest single financial mistake a taxpayer can make for several reasons.  First, these premature withdrawals are not only subject to regular federal and state taxes but most always a 10% federal penalty as well.  This serves as a double negative as not only are you paying additional taxes and penalties but you are also “diving into” your “nest egg” threatening not only your age of potential retirement but also the quality of it.  Furthermore, most all taxpayers who receive a premature distribution fall into a false sense of security wrongly believing the statutory withholding done to be adequate to meet their year-end obligation on these monies, only to find out they have woefully underpaid their taxes and are now subject to further penalties and interest.

Tax Planning

Perhaps the most common error is the failure of taxpayers to anticipate their current year’s taxable income and to plan ahead by paying the IRS and state taxes as the income is earned.  Failure of taxpayers in any of the above areas will also negatively impact their ability to plan for and pay their taxes on a timely basis.  Also the U.S. tax system is a graduated system in which the marginal tax rates increase as does a taxpayers income.  Taxpayers fail to see their return as the dynamic calculation that it is, as income and lifestyle changes and tax law continually impact a taxpayer’s final calculation of tax liability.

His CPA, P.C. aggressively works to be proactive in the planning for and anticipation of what will be your year-end liability.  Put our firm to work for you to avoid unnecessary and unpleasant surprises. 

 ”Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

 John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

Gwinnett CPA on Addressing IRS Tax Audits 

Be Sure You Pay Only Your Lowest Legal Possible Tax 

The below is a sample of what we might receive from a taxpayers seeking a CPA to help them with their Taxpayer Advocacy Issues.

I just received notice from the Internal Revenue Service, that I am to be audited.  Can you help me or do you know of a Christian CPA that I could contact?  Thanks so much for your time. 

The below is my response:

Thanks for visiting www.HisCPA.com

 I would be happy to help you with your audit. 

I would need a copy of  the returns being audited and the tax notices received. 

Would need you to sign an power of attorney. 

Would need to go over with you what documentation you have to substantiate the items in question being audited. 

This will confirm our advice that:

Please sign and return the enclosed power of attorney and retainer ASAP.

Please be sure that both you and your wife sign/date the power of attorney.

That I suggested you look to be an S Corporation ASAP for legal liability protection.

That you are pulling together the information for the audit and that we will talk approximately 9-1-10.

That you are calling the IRS  tax agent today and advise that you are signing a power of attorney ASAP and that I will contact them the week of 9-1-10. 

Feel free to give me a call and we can discuss. 

John Dillard, CPA of His CPA, PC (An Atlanta CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Christian CPA on IRS Representation 101 

Find a CPA Who is Willing to Work to Ensure Your Best Interests Are Achieved

At His CPA PC we strive to do business the old fashioned way giving our clients much more than they thought they needed. In our ever changing economic times, it is even more important than ever for business owners to find a CPA who will help them stay ahead of the power curve in addressing your business issues, trends, and tax planning. Find a CPA firm that lives out the “Golden Rule” in serving others and the community. A CPA Firm should be willing to meet with your for an initial free consultation. By offering this information gratis, you and the CPA can heighten the understanding of his fellow business owners and taxpayers and to contribute back to the community in which he lives and works.

For the individual or business taxpayer who has run afoul of the IRS and is dealing with seemingly overwhelming tax issues, there are words of wisdom to successfully resolve your tax problems, how to pay your taxes on a timely basis by properly utilizing withholding, estimated payments, and extensions. The below is a sample letter we might send to the IRS to address open tax issues with the IRS:

Internal Revenue Service

Atlanta GA 39901 

Enclosures: Personal Power of Attorney, Amended 2009 Amended Personal Return, Affidavit and Supporting Documentation Acknowledging Independent Contractor Income was Done and Recorded as Income on the Corporate Income Tax Return  

Dear Sir/Madam,      

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address all the monies they presently have open with the IRS, including both payroll taxes and income taxes.  I am willing/eager to supply you with any information that you might need in order to process their case and to pay any and all outstanding monies.  

I am writing to appeal the findings as detailed in the above mentioned letters and to request abatement for the Civil Penalty for the 2010 Tax Year. 

1. My name is John C. Dillard CPA of His CPA, PC and I have a power of attorney to represent the above client. My address is 1940 Woods River Lane, Duluth GA 30097 and phone is 770 814 9304.

2. My clients SS #’s are listed above.

3. I want to appeal the original findings as the original assessment was incorrect and a signed amended return to reflect what is actually owed is attached. Please accept this return is filed.

4 & 5. The facts supporting our position are as follows: 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues.  

Please note that the original assessment assigned taxable income to them for Independent Contractor income that was for business done in the corporate name and deposited into the corporate account. Accordingly this income should not be taxed on their personal return. I have attached an affidavit and corresponding information/details prepared by the taxpayer to this effect. I forwarded on 8-1-10 a letter (copy attached) to the IRS and the Social Security Administration to ask them to correct their records for  the 2009 tax year for which I have forwarded copies of the correct W-2’s and W-3.  

I believe it is a just and fair request to abate all of the previously assessed penalties. The taxpayers had no financial adviser in the past and they have retained me to assist them in this endeavor. At your earliest opportunity please call and confirm that the collection efforts have been stopped. I believe the IRS is a just and fair institution whose goal is to assist those who are now attempting to comply with all of their current tax liabilities and has now a proven track record of doing so. Under penalties of perjury, I declare that the facts presented in my written protest, which are set out in the accompanying statement of facts, schedules and other statements are, to the best of my knowledge and belief, true, correct and complete. 

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Christian CPA on Plain Talk for Your Tax Issues 

Find a CPA Who You Can Talk To & Understand 

Even if you find the smartest CPA in the world, it will not help you much if they cannot communicate. My goal as a CPA is to be as technically competent as possible while also being a person of the people. A CPA who graduates at the top of their class, graduates with honors, passes the CPA exam early, has experience as a CFO for firms with tens of millions of revenue and hundreds of employees, cares about his community, is published, is involved in their church, is active in missions and is award winning are all things you might consider when looking to hire a CPA for your Atlanta business. The below is a sample of a letter we might receive from a client (What Clients of John Dillard CPA/His CPA PC Have to Say).

Dear Mr. Dillard: Thanks for everything yesterday. I will treasure the autographed book, A Voice of One that has gained you a nomination for the Georgia Author of the Year Award for the Second Year in a Row.

I also have attached a portable version of QuickBooks for my office. It has the P&L and balance sheets for your review. I could not figure out how to e-mail those reports individually so I sent the portable file of my company. If you can’t open it, I can fax you those reports. You can see how I entered things. I tried starting over again and created a file with a temporary new name. I still had difficulty journaling the way you said — I couldn’t find a way to enter the checks in the journal — so I sent what I had been doing for your review. I promise I won’t keep bothering you with this but I just wanted you to see what I’ve done and what that I may be doing wrong. This works for me but I want it work for you moving forward so that at tax time, my reporting will be the way we both needed it to be. Thank for your time. 

The below is my response:

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Work With a CPA That Gives Your Practical & Useful Tax Guidance 

As Believers I am thankful that I have Jesus Christ as in Intercessor & Advocate. So it is in this world that we need others to help walk alongside us and to guide us in the way that we should go. This world and tax law in particular is difficult for all to understand. It is to this end that I suggest all business owners work with a CPA who desires to teach and advise their clients in order that they may learn what they need to know to more profitably run their company’s financial affairs. Below is such a letter we might receive from a  client seeking guidance: 

Hey, I saw your ad on and wanted to ask you a question. I wasn’t even looking for anything like what your ad said. I was just randomly looking under the barter section because I have never looked there before. When I saw your ad it peaked my curiosity.
 
I got audited by the IRS and that has never happened to me before. It was on my 2009 tax return. I’m going to be honest, I took my W-2’s to a Tax Preparation Firm (not a CPA Firm) and they helped prepared my taxes. I got back around $4,000 when they did my return. After my audit the IRS is wanting me to pay back just barely over $2,000. I have no idea what to do. I don’t have any documentation to back up anything that they claimed on the return. And, to be honest, I have no idea what they did. I never asked questions and they never said anything. The two things that I know I did but it wasn’t mentioned in the letter from the IRS is I used dependents to get extra money.
 
Anyway, if you have any kind of advice or anything at all, let me know. I’m just super scared and I’m not sure how to handle this or what’s going to happen. I have until 9-10-10 to respond. I look forward to hearing from you soon.

Below is my response:

I would pay the amount in full that they ask for including correcting the returns where you claimed deductions for which you were not entitled.  If the penalties get to be where they are over a $1000 then give me a call and we can have you complete a power of attorney to help you address the open monies owed the IRS. Please be reminded that you will also want to amend your Georgia state return, as well.

In the future I encourage you to use a CPA firm for all of your tax information, especially if you own a business or you make more than just a few itemized expenses. Be sure that you have documentation for all deductions claimed. I would welcome helping you in future years be sure your taxes are as low as legally possible. All the best,

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

His CPA PC…A Christian CPA Firm….Serving Metro Atlanta Taxpayers for Decades

An Offer in Compromise to the IRS and/or the state of Georgia is a proposal on your part to pay only a portion of the back income taxes you owe. If the offer is accepted, the remainder of the tax debt will be forgiven. For individuals or corporations with significant tax problems, an IRS offer in compromise can eliminate tax obligations much the same way as filing bankruptcy can eliminate personal or corporate debt.

The IRS has specific rules that must be followed when submitting an offer in compromise, including:

• All tax returns and forms from prior and current years must be submitted
• You must be paid up on all current year tax obligations, including estimated tax payments
• The amount you propose to pay must be reasonable, based on your net worth and estimated cash flows for the next several years
• If the IRS accepts your offer in compromise, you will be required to stay current on all personal and corporate tax obligations for the next five years.

Frequently however the most important aspect of getting tax issues satisfactorily addressed is to first review the past. For those who have not yet addressed the past and make any corrective actions required are doomed to repeat it. It is to that extent that we might send the below sample letter to address past tax issues, while preparing current income tax returns.

For your personal return and for the Installment Agreement…I need 

The full name and address of your present employer or if still working for your present S Corporation, please confirm. 

Full name and address of your bank. Your bank account number and bank routing number. 

If you made any federal or state estimated payments for 2009. If you made any federal or state estimated payments for 2010. You need to be current on your 2010 payments to get an Installment Agreement with the IRS. 

I suggest we look to incorporate you ASAP as an S Corporation. I will send you a separate e-mail on this so that you can consider. Please be advised that Congress is considering limiting the tax benefits of an S Corporation in the future. However, I would suggest you do, even if the benefits are for only this year. 

Please confirm the amount of the rent and how calculated.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville, Washington D.C., Nashville, Las Vegas, Portland, Oklahoma, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington, and Beyond.

Keeping Clients Informed to Help Keep Your Tax Bill as Low as Legally Possible 

It is the predominant job to ensure the several key areas are always addressed: 

Staying Current with all of Your Business & Tax Filings. It is to this end that I might forward the below sample letter to ensure that all tax representation and filing issues as well as the company’s financial reporting are always placed in the forefront of a taxpayer: 

The grave and serious collection efforts are here. I suggest you address the below open issues ASAP to avoid limit severe financial disturbances. 

For your 433A & Your 433B

Your expenses listed are to be monthly totals/averages.

I need for you to pull together the three months of documentation required in the IRS guidelines to detail/prove items listed. as these are required to be mailed with the Offer. 

Do not leave any areas blank, if N/A please document. 

I need you to do a Form 656. 

You need to retain a payroll service now before we submit Offer and to update your 433B accordingly. 

For your 433A

Need you to provide along with documentation mentioned above copies of comparables of your primary residence. 

As we have discussed one of the rules of an Offer in Compromise is that you have to be current on your tax filings and payments. Therefore it is imperative today to: 

Get you utilizing a payroll service. 

You make an 1040ES payment to the IRS for $3,000 and an 500ES payment to GA for $1,000 as an estimate of taxes owed on monies earned to date. Please get to me copies of the checks when you send them ASAP. 

For your February data I still need: 

For you to reconcile all of the accounts that are listed on the balance sheet and forward to me the reconciliation.  

Yes, I do want you to do a detailed schedule by account, date and amount of all deposits (that are income and not transfers)  reconciling/listing all revenue and reconciling it to the Profit and Loss for the month. 

In the future please record all items on all accounts using the A/P  or Manual Check Recording rather than journal entries when recording your data into Quickbooks. 

Please forward ASAP and do not hesitate to call should you have any questions.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Success in IRS Negotiations: Tax Advocacy

A successful audit experience depends on your ability to stay focused on the truth, the process, and to steadfastly stay on course. We have helped many through the successful completion of the audit and its ultimate disposition. Contact HIS CPA PC (A Christian CPA Firm) today.

It us usually most advantageous for the CPA alone to meet with the IRS so as to remove any emotional issues, which might otherwise surface and dampen the ability to successfully and quickly resolve the process. Taxpayers that strive to handle their own audit by themselves they fail to sense and adequately address the issues the IRS request; thereby causing themselves unnecessary hardships and economic loss. A CPA, who is familiar with you, your business and tax law is far more apt to successfully close an audit with no changes. Often during the audit process, yours as well as your CPA’s, expertise, will, and judgment will be challenged causing you to want to negotiate just to make the issue go way. However, this is not the best direction to choose as settling on any issue at all, when you are right, is not a prudent business decision especially in an audit environment. Of course this assumes that you can prove that your return has been truthfully prepared while using judicious and sound judgment and tax law accurately to reflect your true and just tax. The below is a sample letter that might be used to help ensure that all parties are actively involved in the IRS representation process and to ensure that a taxpayers rights and responsibilities are keeping all informed:

Dear Sir/Madam, 

I am following up on our conversation about the above referenced taxpayers and to request that you have placed a sixty collection hold on the account. 

I have went over the rules of an OIC (Offer in Compromise) and they appear to be an ideal candidate. Accordingly please cease all of your collection efforts while I work with the client to file their Forms 433A, Form 433B and Form 656 to Submit  an Offer in Compromise. Taxpayers have committed that they will be getting this information to me ASAP. Accordingly please suspend and cease all collection efforts for sixty days while this information is being pulled together, the corporate and personal income tax returns filed, and the paperwork for a Offer in Compromise submitted. 

Please do not pursue any further collection efforts while the taxpayers’ OIC  is being processed as it could both dramatically impair their ability to both fund the offer and to meet normal monthly living expenses. 

I look forward to working with you to address their open tax monies ASAP. 

Please cease and suspend all collection efforts for sixty days while this Offer is being submitted.  

Sincerely,  John C. Dillard, CPA, PC,  Partner in Charge

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

 How to Deal Successfully with the IRS to Address Unpaid Back Taxes 

For a taxpayer who has run afoul of the IRS and is dealing with seemingly overwhelming tax issues, there are words of wisdom to successfully resolve your tax problems, how to pay your taxes on a timely basis by properly utilizing withholding, estimated payments, and extensions. There are many things we can do to help you avoid tax problems and unnecessary penalties, we can also help you discover the general guidelines and rules of how to qualify for and process an Offer in Compromise. This is a process where both the Internal Revenue Service and the State of Georgia will reduce your bill to what you can afford to pay based upon detailed tax regulations, procedures, and careful compliance.

Working closely with you to help resolve tax issues, penalties, back returns, liens, levies and garnishments. Our keep it simple style in dealing with technically difficult and sensitive issues are embodied in our ability to keep you well informed of the progress on your account as it works its way through the tax system. Call us today to be sure that all of your rights are protected and that you pay only your lowest legal possible tax. The below is a sample letter we might send to a client to encourage them to address IRS tax issues before they become even more problematic as taxpayers have two options. Taxpayers can either aggressively address their IRS tax issues or the IRS will deal aggressively with non-compliant taxpayers.

The IRS rejected your Offer in Compromise. I would like to give you an hour or two of free time to discuss your options before the IRS resumes garnishments/levies/seizure of assets and the taking of wages which I anticipate will happen within ten days to two weeks. 

I suggest we meet and discuss ASAP.

John Dillard, CPA of His CPA, PC, 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.HisCPA.com/    http://www.John-Dillard.com/

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! 

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.